SAP: Boredom is the death of the brand
Almost half of Generation Z members are abandoning brands that are becoming boring. Younger consumers want more: they don’t stay loyal to a product or brand because they liked it, got used to it and bought it. Many are attracted to new products that use cool content or images, or simply “have a good vibe,” and therefore replace their old favorites. There is a relentless battle for the favor of customers, and artificial intelligence may now be the main help in achieving and maintaining customer loyalty, according to research by SAP Emarsys.
SAP Emarsys’ fourth customer loyalty index was prepared by Opinion Matters based on the responses of more than two thousand British consumers aged 16 and over in June this year. The survey can provide many lessons for marketers.
According to the research, 46 percent of Generation Z and 29 percent of other age groups have left a brand they were previously loyal to because they got bored with it. Whether consumers are more deeply interested in a brand or not, the key to long-term success lies in personalization, relevant content, and offering unique perspectives tailored to individual interests. According to SAP Emarsys, young people are particularly attracted to innovative marketing. 30 percent of Gen Z have tried a new brand specifically because of creative marketing, compared to 23 percent of all respondents. In addition, 31 percent of Gen Z are attracted to brands that use cool content; this rate is only 21 percent for other age groups. 28 percent of today’s 16-29 year olds look for brands that provide memorable experiences; this is only 17 percent of other demographics that can be “bought.”
What does it take for brands to expand the initial loyalty generated by rapidly changing social trends into long-term, genuine loyalty? SAP Emarsys uses AI to optimize the entire marketing process, from customer segmentation to campaign execution to performance analysis, for companies looking to stay ahead of the competition. Artificial intelligence identifies the most profitable, underutilized customer groups that represent new opportunities at different lifecycle stages. This enables campaigns to be delivered at the right time and through the most effective channels. The solution personalizes content and interactions in real time, making personal connections across multiple platforms seamless. Each future interaction helps to more accurately predict the customer’s future needs.
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